1. University of Arizona Property Administration Financial Services Office Susan Richmond, Assistant Director of Capital Finance & Sponsored Projects Services Jennifer Brown, SPS Property Administrator

2. W HAT IS C ONSIDERED C APITAL E QUIPMENT ? Equipment must meet all of the following criteria to be considered capital equipment: Acquisition cost of $5,000 or more Useful life greater than one year Free standing Movable or portable Complete in itself and Will not lose Identity when affixed to or installed in another asset

3. WHAT IS THE THRESHOLD FOR SPONSOR TITLED EQUIPMENT? Depends on the terms and conditions of the award, in many cases there is no threshold Often we tag items with an acquisition cost of $1,000 that are considered sponsor owned Government furnished equipment (GFE) has no threshold and we tag regardless of cost

4. WHY DO WE DO INVENTORY? Subject to regulations: Federal – Uniform Guidance State – Arizona Revised Statutes Arizona Board of Regents Subject to audits: Office of Naval Research (ONR) property audit A-133/Uniform Guidance Audit Financial Statement Audits Sponsor specific audits

5. WHO OWNS THE INVENTORY? Unless retained by a sponsor, title to or ownership of all University property is vested in the Arizona Board of Regents The University is responsible for the maintenance, repair and care-in-use of all capital equipment in its possession, including government and other sponsor titled equipment held by the University, in order that the most useful life is obtained

6. E QUIPMENT T AGS

7. INVENTORY OF MOVEABLE EQUIPMENT The University Physical Inventory of Moveable Equipment is conducted on a biennial basis (once every 2 years) The temporary or permanent relocation of University and sponsor owned equipment must be reported to Property Management-FSO University departments are to keep their offices, lectures rooms, laboratories, research facilities and storage area free of excess, broken, dilapidated and surplus equipment

8. SELLING OR TRANSFERRING MOVEABLE EQUIPMENT The University is prohibited by the Arizona Revised Statutes from giving away assets without receiving comparable value in return The University may sell University equipment to another university, college, government or agency at the equipment’s fair market value It is possible for research personnel who have terminated employment with the University of Arizona, but who will be employed by another university or college, to transfer research equipment acquired on both current and retired sponsored accounts to their new institution

9. SPONSOR TITLED EQUIPMENT Sponsor titled equipment Requires additional oversight Property reported to sponsor on a monthly, quarterly, and/or annual basis Subject to additional audits

10. IDENTIFICATION OF SPONSOR TITLED ASSETS S-tags Orange in color Property of sponsor/federal government tags

11. Sponsor Titled Assets Movement – update location!!! No longer in use - disposition instructions Lost/unable to locate - Relief of Accountability Police Report Report to risk management Corrective action plan

12. Sponsor Titled Equipment Continued ONR Property Audit – performed to determine whether or not the University Property System is compliant as required by FAR 52.245-1(f)(3) Auditors will check for the following: Physical existence of equipment Equipment is in use and functional The off-campus form is complete for off campus equipment University records match the property tag number, serial number, model number, location and manufacturer to the asset and its location Federal property has a ‘Property of the Federal Government’ label and UA Property does not

13. Sponsor Titled Equipment Continued Audit results If the UA Property System is deemed unsatisfactory, the University will NOT maintain eligibility to receive government funding for the acquisition of equipment Not having an approved property system can result in the loss of millions of dollars in sponsor funding for the University

14. CONCLUSION All equipment belongs to the University or the funding sponsor Location should be updated in the property system when equipment is moved Utilization should be reviewed often Only in some circumstances can we transfer equipment to another institution Sponsor titled equipment may be handled differently than University equipment

15. Questions UA Property Contacts LPL Property Administrator: Sarah Lane-Gaxiola slane@email.arizona.edu 520-621-9592 Inventory Specialist: Kelsey Haight kjhaight@email.Arizona.edu 520-626-5592 SPS Property Administrator: Gricelda La Turco laturco@email.arizona.edu 520-626-4610